In this article, we will analyze a series of covered call trades shared with me by a BCI premium member. These trade executions involve establishing a bullish covered call position, then rolling-down and then rolling-out. All of our trades serve as learning opportunities and these ELV trades are no exceptions. ELV trades from 11/7/2022 […]

BCI PODCAST 104: Special 1 Time Dividends and Contract Adjustments
Watch Video: Listen To Audio Version: Special 1-time cash and equity dividends will result in option contract adjustments. The Options Clearing Corporation (OCC) will make the alterations such that buyers and sellers of calls and put remain “whole” Ticker symbols and deliverables may change or tickers may stay the same while strikes are reduced. 2 […]

Ask Alan 206: 20%/10% Guidelines for In-The-Money Strikes
Alan answers a question posed by Ken, who asks: Alan, In the BCI system, do we apply the 20%/10% guidelines the same way for ITM calls as when selling OTM calls? For OTM, it is based only on extrinsic-value. For ITM, is it based on the entire premium or just the extrinsic-value of the premium? […]

BCI PODCAST 103: The Collar Strategy Using Long-Term Put Expirations
Watch Video: Listen To Audio Version: This podcast discusses the pros and cons when using longer-term put expirations with our collar trades. These are covered call writing trades with additional protective puts. The BCI Collar Calculator will assist with the trade returns which, on the surface, appear impressive but the negatives will also be discussed. […]

BCI PODCAST 102: Analyzing Market Assessment Based on Portfolio Setup
Watch Video: Listen To Audio Version: This podcast represents an analysis of the investor’s thought process based on examination of the stocks and options selected for this covered call writing portfolio. Included in the podcast are discussions of personal risk-tolerance, implied volatility, initial time-value returns, the “moneyness” of options, price charts and calculations with the […]
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